Europe heatwaves deepen business insurance gap
Europe’s fifth heatwave of the year is disrupting businesses, reducing customer spending and exposing companies to major losses that traditional insurance often does not cover. In Italy’s Padua, hospitality businesses have seen evening outdoor activity decline as customers avoid high temperatures and move indoors, hurting sales during the traditional aperitivo hours. Read more : French […]
Europe is experiencing its fifth heatwave of the year, causing disruptions to businesses and significant economic losses. In Italy, specifically in Padua, the traditional aperitivo hours have been impacted, with customers opting for indoor activities to escape the heat, resulting in a decline in sales for hospitality businesses. According to a survey of around 600 hospitality businesses in Padua and its province, over 80% reported a 20% decline in turnover during the recent heatwave.
The heatwaves are having a broader impact on the European economy, with low river levels stalling freight traffic in Germany and forcing the closure of nuclear plants in France. Economists at the Dutch bank Triodos estimate that the heatwaves could wipe €180bn off EU GDP. In the UK, the green thinktank Verdant reported that the heat had already cost the economy £4.4bn by the end of July.
The economic losses caused by the heatwaves often fall outside traditional business interruption insurance, exposing a growing protection gap for companies across Europe. According to Moody’s, last summer’s European heatwaves resulted in €43 billion in lost economic output, with only about €500 million of insured payouts. The heatwaves are reducing productivity, curbing consumer spending, and raising operating costs, highlighting the need for businesses to reassess their insurance coverage.
Brief written by urgent.news from Daily Times, Guardian Business, Business Recorder — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.
